All Pakistan Textile Mills Association (APTMA) has expressed appreciation for PM Khan and his team for taking serious initiatives to boost Pakistan’s economy. Recently, the government approved the Textiles and Apparel Policy (TAP) 2020-25 to double Pakistan’s export target up to $42 bn. Textile Policy approved by the cabinet contemplated three years target as textile exports will be jacked up to $27 bn in the fiscal year 2022-23, $34 bn in 2023-24, and $42 bn in the fiscal year 2024-25.
According to the Prime Minister aide on Commerce & Textiles Abdul Razak Dawood, one of the main objectives of the textile policy is to give Pakistan’s textile industry internationally competitive electricity and gas rates. Regarding this, the parliament also passed the amended Weighted Average Cost of Gas (WACOG) Bill recently. To clarify, the WACOG is a new method of fixing gas prices.
The historic reform will ensure Pakistan’s energy security. While talking about WACOG, Minister for Energy Hammad Azhar said in a tweet that the bill will improve the pricing structure, remove anomalies and enhance supplies of imported gas. Moreover, textile units in Pakistan are incurring power and energy costs 2. 4 percentage points more than India and 7.8 percentage points higher than Bangladesh. Therefore, the stable pricing structure in addition to an increase in gas supply will boost the production of the textile industry which had faced a steep decline in 2022 owing to disruptions in gas and electricity supply.
Important to mention, Pakistan also expressed determination to implement the 27 conventions related to GSP plus. To clarify, the EU Generalised Scheme of Preferences (GSP) is a special incentive arrangement for sustainable development and good governance. It slashes tariffs to 0 percent for vulnerable low and lower-middle-income countries that implement 27 international conventions related to human rights, labor rights, protection of the environment, and good governance.
Reacting to the welcoming developments, APTMA congratulated PM Imran Khan and the PTI Government. APTMA stated that such initiatives are major steps towards a sustainable economy. “We congratulate Imran Khan & his team for approval of textile Policy, WACOG & continuity of GSP plus – major steps towards a sustainable economy,” said APTMA.
“Textile Sector is leading the march to progress & economic sovereignty,” APTMA further added.
According to APTMA, the textile policy will encourage investments in Pakistan. It will create more employment opportunities and develop new markets. On the other hand, the WACOG Bill will bring sustainability to the gas sector. Meanwhile, Pakistan’s continued GSP status improved the country’s exports levels.
To clarify, textile exports surged by 24.73 percent during the first seven months of the current fiscal year (2021-22). The textile exports were recorded at $10,933.446 mn in July-January (2021-22) against the exports of $8,765. 883 mn in July- January (2020-21), showing growth of 24.73 percent.
The initiatives will certainly help Pakistan’s economy since the textile industry comprises 46 percent of the total manufacturing sector. It provides employment to around 25 mn Pakistanis and contributes 8.5 percent to the GDP.
All Pakistan Textile Mills Association (APTMA) has expressed appreciation for PM Khan and his team for taking serious initiatives to boost Pakistan’s economy. Recently, the government approved the Textiles and Apparel Policy (TAP) 2020-25 to double Pakistan’s export target up to $42 bn. Textile Policy approved by the cabinet contemplated three years target as textile exports will be jacked up to $27 bn in the fiscal year 2022-23, $34 bn in 2023-24, and $42 bn in the fiscal year 2024-25.
